Weibo Reports Fourth Quarter and Fiscal Year 2022 Unaudited Financial Results

BEIJING,March 1,2023 -- Weibo Corporation ("Weibo" or the "Company") (NASDAQ: WB and HKEX: 9898),a leading social media in China,today announced its unaudited financial results for the fourth quarter and fiscal year ended December 31,2022.

"We navigated through the challenging 2022 with solid operating efficiency," said Gaofei Wang,CEO of Weibo. "Our community remained healthy and engaged,mainly attributable to the optimization of social product and effective channel investment. On monetization,our advertising business has exhibited recovery trend in the second half of 2022,although macro challenges continuously weighed on the overall advertising demand. We are pleased to see the operating efficiency that we achieved throughout this year,with non-GAAP operating margin reaching 33% for 2022. As we entered into 2023,we will embrace the broad recovery of the advertising business post China's reopening and drive value for our advertisers through our ecosystem based integrated marketing solution. We will continue to focus on enhancing operating efficiency,aiming to sustain our long-term competitiveness in the market."

Fourth Quarter 2022 Highlights

Net revenues were $448.0 million,a decrease of 27% year-over-year or a decrease of 20% year-over-year on a constant currency basis[1].

Advertising and marketing revenues were $390.5 million,a decrease of 29% year-over-year.

Value-added service ("VAS") revenues were $57.5 million,a decrease of 12% year-over-year.

Income from operations was $160.5 million,representing an operating margin of 36%.

Net income attributable to Weibo's shareholders was $141.9 million and diluted net income per share was $0.60.

Non-GAAP income from operations was $152.0 million,representing a non-GAAP operating margin of 34%.

Non-GAAP net income attributable to Weibo's shareholders was $178.5 million and non-GAAP diluted net income per share was $0.75.

Monthly active users ("MAUs") were 586 million in December 2022,a net addition of approximately 13 million users on year-over-year basis. Mobile MAUs represented 95% of MAUs.

Average daily active users ("DAUs") were 252 million in December 2022,a net addition of approximately 3 million users on year-over-year basis.

Fiscal Year 2022 Highlights

Net revenues were $1.84 billion,a decrease of 19% year-over-year or a decrease of 15% year-over-year on a constant currency basis[2].

Advertising and marketing revenues were $1.60 billion,a decrease of 19% year-over-year.

VAS revenues were $239.7 million,a decrease of 13% year-over-year.

Income from operations was $480.5 million,representing an operating margin of 26%.

Net income attributable to Weibo's shareholders was $85.6 million and diluted net income per share was $0.36.

Non-GAAP income from operations was $601.1 million,representing a non-GAAP operating margin of 33%.

Non-GAAP net income attributable to Weibo's shareholders was $540.1 million and non-GAAP diluted net income per share was $2.27.

[1]On a constant currency (non-GAAP) basis,we assume that the exchange rate in the fourth quarter of 2022 had been the same as it was in the fourth quarter of 2021,or RMB 6.39=US$1.00.

[2]On a constant currency (non-GAAP) basis,we assume that the average exchange rate of 2022 had been the same as 2021,or RMB 6.45=US$1.00.

Fourth Quarter 2022 Financial Results

For the fourth quarter of 2022,Weibo's total net revenues were $448.0 million,a decrease of 27% compared to $616.3 million for the same period last year.

Advertising and marketing revenues for the fourth quarter of 2022 were $390.5 million,a decrease of 29% compared to $550.8 million for the same period last year. Advertising and marketing revenues excluding ad revenues from Alibaba were $348.3 million,a decrease of 31% compared to $505.3 million for the same period last year,primarily due to disruptions on the Company and its advertisers from COVID-19 control measures and infections in major areas of China during this quarter.

VAS revenues for the fourth quarter of 2022 were $57.5 million,a decrease of 12% year-over-year compared to $65.5 million for the same period last year. The decrease was mainly due to less revenue contribution from membership service and live streaming business.

Costs and expenses for the fourth quarter of 2022 totaled $287.5 million,a decrease of 34% compared to $433.8 million for the same period last year. The decrease was primarily due to the reverse of approximately $58.8 million previously accrued compensation expenses based on a contingent payment arrangement between the Company and the founder of Shanghai Jiamian Information Technology Co.,Ltd. ("JM Tech"),an entity consolidated into the Company since the fourth quarter of 2020,as the performance condition of JM Tech defined in the contingent payment arrangement was not met. The decrease of costs and expenses are also broad-based across all items,mainly attributable to the solid execution of the disciplined spending strategy for the Company to further improve its operating efficiency.

Income from operations for the fourth quarter of 2022 was $160.5 million,compared to $182.5 million for the same period last year. Operating margin was 36%,compared to 30% last year. Non-GAAP income from operations was $152.0 million,compared to $219.8 million for the same period last year. Non-GAAP operating margin was 34%,compared to 36% last year.

Non-operating loss for the fourth quarter of 2022 was $21.1 million,compared to a loss of $36.8 million for the same period last year. Non-operating loss for the fourth quarter of 2022 mainly included (i) a $31.5 million investment related impairment,which is excluded under non-GAAP measure; (ii) a $30.3 million net gain from fair value change of investments,which is excluded under non-GAAP measures; and (iii) a $17.5 million net interest and other loss.

Income tax benefits were $18.7 million,compared to income tax expense of $45.6 million for the same period last year. The income tax benefits were primarily due to (i) the reversal of tax liabilities recognized related to uncertain tax positions; and (ii) lower taxable income in the fourth quarter of 2022 compared to the same period last year.

Net income attributable to Weibo's shareholders for the fourth quarter of 2022 was $141.9 million,compared to $115.7 million for the same period last year. Diluted net income per share attributable to Weibo's shareholders for the fourth quarter of 2022 was $0.60,compared to $0.50 for the same period last year. Non-GAAP net income attributable to Weibo's shareholders for the fourth quarter of 2022 was $178.5 million,compared to $195.5 million for the same period last year. Non-GAAP diluted net income per share attributable to Weibo's shareholders for the fourth quarter of 2022 was $0.75,compared to $0.83 for the same period last year.

As of December 31,2022,Weibo's cash,cash equivalents and short-term investments totaled $3.17 billion. For the fourth quarter of 2022,cash provided by operating activities was $158.7 million,capital expenditures totaled $15.3 million,and depreciation and amortization expenses amounted to $12.4 million.

Fiscal Year 2022 Financial Results

For fiscal year 2022,Weibo's total net revenues were $1.84 billion,a decrease of 19% compared to $2.26 billion in 2021.

Advertising and marketing revenues for 2022 were $1.60 billion,a decrease of 19% compared to $1.98 billion in 2021. Advertising and marketing revenues excluding ad revenues from Alibaba were $1.49 billion,a decrease of 19% compared to $1.84 billion for 2021. The decrease was mainly resulted from disruptions from Covid-19 and macro weakness which largely impacted on advertising demands.

VAS revenues for 2022 were $239.7 million,a decrease of 13% compared to $276.3 million for 2021. The decrease was primarily due to less revenue contribution from membership service and live streaming business.

Costs and expenses for 2022 totaled $1.36 billion,compared to $1.56 billion for 2021. The decrease was primarily due to (i) the decrease of sales and marketing expenses as we executed a disciplined channel strategy; (ii) the reverse of approximately $58.8 million previously accrued compensation expenses based on a contingent payment arrangement entered between the Company and the founder of JM Tech,as the performance condition of JM Tech defined in the contingent payment arrangement was not met; and (iii) a broad-based decrease of costs and expenses as we implemented our efficiency initiatives.

Income from operations for 2022 was $480.5 million,compared to $697.4 million for 2021. Operating margin for 2022 was 26%,compared to 31% last year. Non-GAAP income from operations was $601.1 million,compared to $829.2 million for 2021. Non-GAAP operating margin was 33%,compared to 37% last year.

Non-operating loss for 2022 was $352.4 million,compared to a loss of $146.7 million for 2021. Non-operating loss in 2022 mainly included (i) a $243.6 million net loss from fair value change of investments,which is excluded under non-GAAP measures; and (ii) a $67.2 million investment related impairment,which is excluded under non-GAAP measures; and (iii) a $39.3 million net interest and other loss.

Income tax expenses for 2022 were $30.3 million,compared to $138.8 million for 2021. The decrease in income tax expense was primarily resulted from (i) lower taxable income in 2022 versus 2021; and (ii) the reversal of tax liabilities recognized in 2021 related to uncertain tax positions.

Net income attributable to Weibo's shareholders for 2022 was $85.6 million,compared to $428.3 million for 2021. Diluted net income per share attributable to Weibo's shareholders for 2022 was $0.36,compared to $1.86 for 2021. Non-GAAP net income attributable to Weibo's shareholders for 2022 was $540.1 million,compared to $718.5 million for 2021. Non-GAAP diluted net income per share attributable to Weibo's shareholders for 2022 was $2.27,compared to $3.08 for 2021.

For fiscal year 2022,cash provided by operating activities was $564.1 million,capital expenditures totaled $43.1 million,and depreciation and amortization expenses amounted to $54.7 million.

Recent Development

The Company is pleased to announce that it has been selected and will be included in the Hang Seng TECH Index as a constituent stock,effective March 13,2023,according to the announcement made by the Hang Seng Indexes Company Limited on February 24,2023. The Hang Seng TECH Index represents the 30 largest technology companies listed in Hong Kong that have high business exposure to technology themes and pass the index's screening criteria.

Conference Call

Weibo's management team will host a conference call from 6:00 AM to 7:00 AM Eastern Time on March 1,2023 (or 7:00 PM – 8:00 PM Beijing Time on March 1,2023) to present an overview of the Company's financial performance and business operations.

Participants who wish to dial in to the teleconference must register through the below public participant link. Dial in and instruction will be in the confirmation email upon registering.

Participants Registration Link: https://register.vevent.com/register/BI398de9fb0d9b4e87879cd38e98d6a336

Additionally,a live and archived webcast of this conference call will be available at http://ir.weibo.com.

Non-GAAP Financial Measures

This release contains the following non-GAAP financial measures: non-GAAP income from operations,non-GAAP net income attributable to Weibo's shareholders,non-GAAP diluted net income per share attributable to Weibo's shareholders and adjusted EBITDA. These non-GAAP financial measures should be considered in addition to,not as a substitute for,measures of the Company's financial performance prepared in accordance with U.S. GAAP.

The Company's non-GAAP financial measures excludestock-based compensation,amortization of intangible assets resulting from business acquisitions,non-cash compensation cost to non-controlling interest shareholders,impairment of intangible assets,investment related income/losses,net,non-GAAP to GAAP reconciling items on the share of equity method investments,non-GAAP to GAAP reconciling items for the income/loss attributable to non-controlling interests,income tax expense related to the amortization and impairment of intangible assets resulting from business acquisitions and fair value change of investments (other non-GAAP to GAAP reconciling items have no tax effect),and amortization of issuance cost of convertible debt,unsecured senior notes and long-term loan. Adjusted EBITDA excludes interest income,income tax expenses (benefits),and depreciation expenses.

The Company's management uses these non-GAAP financial measures in their financial and operating decision-making,because management believes these measures reflect the Company's ongoing operating performance in a manner that allows more meaningful period-to-period comparisons. The Company believes that these non-GAAP financial measures provide useful information to investors and others in the following ways: (i) in comparing the Company's current financial results with the Company's past financial results in a consistent manner,and (ii) in understanding and evaluating the Company's current operating performance and future prospects in the same manner as management does,if they so choose. The Company also believes that the non-GAAP financial measures provide useful information to both management and investors by excluding certain expenses,gains (losses) and other items (i) that are not expected to result in future cash payments or (ii) that are non-recurring in nature or may not be indicative of the Company's core operating results and business outlook.

Use of non-GAAP financial measures has limitations. The Company's non-GAAP financial measures do not include all income and expense items that affect the Company's operations. They may not be comparable to non-GAAP financial measures used by other companies. Accordingly,care should be exercised in understanding how the Company defines its non-GAAP financial measures. Reconciliations of the Company's non-GAAP financial measures to the nearest comparable GAAP measures are set forth in the section below titled "Unaudited Reconciliation of Non-GAAP to GAAP Results."

About Weibo

Weibois a leading social media for people to create,share and discover content online. Weibo combines the means of public self-expression in real time with a powerful platform for social interaction,content aggregation and content distribution. Any user can create and post a feed and attach multi-media and long-form content. User relationships onWeibomay be asymmetric; any user can follow any other user and add comments to a feed while reposting. This simple,asymmetric and distributed nature ofWeiboallows an original feed to become a live viral conversation stream.

Weiboenables its advertising and marketing customers to promote their brands,products and services to users.Weibooffers a wide range of advertising and marketing solutions to companies of all sizes. The Company generates a substantial majority of its revenues from the sale of advertising and marketing services,including the sale of social display advertisement and promoted marketing offerings.Designed with a "mobile first" philosophy,Weibo displays content in a simple information feed format and offers native advertisement that conform to the information feed on our platform. To support the mobile format,wehave developed and continuously refining our social interest graph recommendation engine,which enables our customers to perform people marketing and target audiences based on user demographics,social relationships,interests and behaviors,to achieve greater relevance,engagement and marketing effectiveness

Safe Harbor Statement

This press release contains forward-looking statements that relate to,among other things,Weibo's expected financial performance and strategic and operational plans (as described,without limitation,in quotations from management in this press release). Weibo may also make forward-looking statements in the Company's periodic reports to the U.S. Securities and Exchange Commission ("SEC"),in announcements,circulars or other publications made on the website of The Stock Exchange of Hong Kong Limited (the "Hong Kong Stock Exchange"),in press releases and other written materials and in oral statements made by its officers,directors or employees to third parties. Statements that are not historical facts,including statements about the Company's beliefs and expectations,are forward-looking statements. These forward-looking statements can be identified by terminology,such as "will," "expects," "anticipates," "future," "intends," "plans," "believes," "confidence," "estimates" and similar statements. Forward-looking statements involve inherent risks and uncertainties. A number of important factors could cause actual results to differ materially from those contained in any forward-looking statement. Potential risks and uncertainties include,but are not limited to,Weibo's limited operating history in certain new businesses; failure to grow active user base and the level of user engagement; the uncertain regulatory landscape in China; fluctuations in the Company's quarterly operating results; the Company's reliance on advertising and marketing sales for a majority of its revenues; failure to successfully develop,introduce,drive adoption of or monetize new features and products; failure to compete effectively for advertising and marketing spending; failure to successfully integrate acquired businesses; risks associated with the Company's investments,including equity pick-up and impairment; failure to compete successfully against new entrants and established industry competitors; changes in the macro-economic environment,including the depreciation of the Renminbi; and adverse changes in economic and political policies of the PRC government and its impact on the Chinese economy. Further information regarding these and other risks is included in Weibo's annual report on Form 20-Fs and other filings with the SEC and the Hong Kong Stock Exchange. All information provided in this press release is current as of the date hereof,and Weibo assumes no obligation to update such information,except as required under applicable law.

Contact:

Investor Relations

Weibo Corporation

Phone: +86 10 5898-3336

Email: ir@staff.weibo.com

WEIBO CORPORATION

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands of U.S. dollars,except per share data)

Three months ended

Twelve months ended

December 31,

September 30,

December 31,

2022

2021

2022

2022

2021

Net revenues:

Advertising and marketing

$ 390,544

$ 550,826

$ 393,426

$ 1,596,650

$ 1,980,795

Value-added services

57,454

65,461

60,134

239,682

276,288

Net revenues

447,998

616,287

453,560

1,836,332

2,257,083

Costs and expenses:

Cost of revenues (1)

106,087

128,545

94,383

400,585

403,841

Sales and marketing (1)

122,665

152,475

113,619

477,107

591,682

Product development (1)

99,328

113,867

97,025

415,190

430,673

General and administrative (1)

(40,552)

38,878

25,322

52,806

133,475

Impairment of intangible assets

-

-

-

10,176

-

Total costs and expenses

287,528

433,765

330,349

1,355,864

1,559,671

Income from operations

160,470

182,522

123,211

480,468

697,412

Non-operating loss:

Investment related losses,net

(3,582)

(41,976)

(105,901)

(313,109)

(176,344)

Interest and other income (loss),net

(17,508)

5,161

(14,460)

(39,273)

29,650

(21,090)

(36,815)

(120,361)

(352,382)

(146,694)

Income before income tax expenses

139,380

145,707

2,850

128,086

550,718

Income tax benefits (expenses)

18,701

(45,581)

(19,760)

(30,277)

(138,841)

Net income (loss)

158,081

100,126

(16,910)

97,809

411,877

Less: Net income (loss) attributable to non-controlling interests

16,165

(15,607)

227

12,254

(16,442)

Net income (loss) attributable to Weibo's shareholders

$ 141,916

$ 115,733

$ (17,137)

$ 85,555

$ 428,319

Basic net income (loss) per share attributable to Weibo's

shareholders

$ 0.61

$ 0.50

$ (0.07)

$ 0.36

$ 1.87

Diluted net income (loss) per share attributable to Weibo's

shareholders

$ 0.60

$ 0.50

$ (0.07)

$ 0.36

$ 1.86

Shares used in computing basic net income (loss) per share

attributable to Weibo's shareholders

234,040

230,679

235,894

235,164

228,814

Shares used in computing diluted net income (loss) per share

attributable to Weibo's shareholders

238,887

231,506

235,894

236,407

230,206

(1) Stock-based compensation in each category:

Cost of revenues

$ 1,820

$ 2,422

$ 2,544

$ 9,417

$ 8,112

Sales and marketing

3,686

5,043

5,107

18,910

15,292

Product development

10,774

14,362

14,424

55,294

43,622

General and administrative

7,097

4,911

7,749

28,092

20,970

WEIBO CORPORATION

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands of U.S. dollars)

December 31,

2022

2021

Assets

Current assets:

Cash and cash equivalents

$ 2,690,768

$ 2,423,703

Short-term investments

480,428

711,062

Accounts receivable,net

502,443

723,089

Prepaid expenses and other current assets

391,502

450,726

Amount due from SINA(1)

487,117

494,200

Current assets subtotal

4,552,258

4,802,780

Property and equipment,net

249,553

68,396

Goodwill and intangible assets,net

245,223

297,335

Long-term investments

993,630

1,207,651

Other non-current assets

1,088,790

1,143,360

Total assets

$ 7,129,454

$ 7,519,522

Liabilities,Redeemable Non-controlling Interests and Shareholders' Equity

Liabilities:

Current liabilities:

Accounts payable

$ 161,029

$ 197,643

Accrued expenses and other current liabilities

923,678

828,952

Deferred revenues

79,949

91,136

Income tax payable

55,282

144,747

Convertible debt

-

896,541

Current liabilities subtotal

1,219,938

2,159,019

Long-term liabilities:

Unsecured senior notes

1,540,717

1,538,415

Long-term loans

880,855

-

Other long-term liabilities

97,404

134,068

Total liabilities

3,738,914

3,831,502

Redeemable non-controlling interests

45,795

66,622

Shareholders' equity:

Weibo shareholders' equity

3,330,250

3,593,821

Non-controlling interests

14,495

27,577

Total shareholders' equity

3,344,745

3,621,398

Total liabilities,redeemable non-controlling interests and

shareholders' equity

$ 7,522

(1) Included short-term loans to and interest receivable from SINA of $420.4 million as of December 31,

2022 and $479.6 million as of December 31,2021.

WEIBO CORPORATION

UNAUDITED RECONCILIATION OF NON-GAAP TO GAAP RESULTS

(In thousands of U.S. dollars,

2022

2021

2022

2022

2021

Income from operations

$

160,470

$

182,522

$

123,211

$

480,468

$

697,412

Add:

Stock-based compensation

23,377

26,738

29,824

111,713

87,996

Amortization of intangible assets resulting from business

acquisitions

4,367

5,716

4,381

19,394

20,589

Accrual (reversal) of non-cash compensation cost to non-

controlling interest shareholders

(36,225)

4,826

4,689

(20,638)

23,246

Impairment of intangible assets

-

-

-

10,176

-

Non-GAAP income from operations

$

151,989

$

219,802

$

162,105

$

601,113

$

829,243

Net income (loss) attributable to Weibo's shareholders

$

141,916

$

115,733

$

(17,137)

$

85,555

$

428,319

Add:

Stock-based compensation

23,176

-

Investment related losses,net (1)

3,582

41,976

105,901

313,109

176,344

Non-GAAP to GAAP reconciling items on the share of equity

method investments

24,662

4,343

(3,503)

27,076

(6,538)

Non-GAAP to GAAP reconciling items for the income/loss

attributable to non-controlling interests

15,005

(16,844)

(154)

9,942

(16,916)

Tax effects on non-GAAP adjustments (2)

394

11,405

(6,605)

(22,523)

(951)

Amortization of issuance cost of convertible debt,unsecured

senior notes and long-term loans

1,440

1,611

1,611

6,273

6,445

Non-GAAP net income attributable to Weibo's shareholders

$

178,518

$

195,504

$

119,007

$

540,077

$

718,534

Non-GAAP diluted net income per share attributable to Weibo's

shareholders

$

0.75

*

$

0.83

*

$

0.50

*

$

2.27

*

$

3.08

*

Shares used in computing GAAP diluted net income (loss) per share

attributable to Weibo's shareholders

238,887

231,506

235,894

236,407

230,206

Add:

The number of shares for dilution resulted from convertible debt(3)

-

6,753

6,753

5,909

6,753

The number of shares for dilution resulted from unvested

restricted share units(3)

-

-

1,550

-

-

Shares used in computing non-GAAP diluted net income per

shareattributable to Weibo's shareholders

238,887

238,259

244,197

242,316

236,959

Adjusted EBITDA:

Net income (loss) attributable to Weibo's shareholders

$

141,319

Non-GAAP adjustments

36,602

79,771

136,144

454,522

290,215

Non-GAAP net income attributable to Weibo's shareholders

178,518

195,504

119,007

540,077

718,534

Interest income,net

(11,784)

(4,231)

(8,896)

(40,109)

(12,719)

Income tax (benefits) expenses

(19,095)

34,176

26,365

52,800

139,792

Depreciation expenses

7,626

8,593

8,268

33,240

32,847

Adjusted EBITDA

$

155,265

$

234,042

$

144,744

$

586,008

$

878,454

(1)

To adjust impairment on,gain/loss on sale of,fair value change of investments and others.

(2)

To adjust the income tax effects of non-GAAP adjustments,which primarily related to amortization and impairment of intangible assets resulting from

business acquisitions and fair value change of investments. Other non-GAAP adjustment items have no tax effect,because (i) they were recorded in

entities established in tax free jurisdictions,or (ii) full valuation allowances were provided for related deferred tax assets as it is more-likely-than-not they

will not be realized.

(3)

To adjust the number of shares for dilution resulted from convertible debt and unvested restricted share units which were anti-dilutive under GAAP measures.

*

Net income attributable to Weibo's shareholders is adjusted for interest expense of convertible debt for calculating diluted EPS.

WEIBO CORPORATION

UNAUDITED ADDITIONAL INFORMATION

(In thousands of U.S. dollars)

Three months ended

Twelve months ended

December 31,

2022

2021

2022

2022

2021

Net revenues

Advertising and marketing

Non-Ali advertisers

$ 348,271

$ 505,333

$ 378,378

$ 1,489,676

$ 1,841,234

Alibaba - as an advertiser

42,273

45,493

15,048

106,974

139,561

Subtotal

390,544

550,826

393,426

1,650

1,795

Value-added services

57,288

$ 447,998

$ 616,287

$ 453,560

$ 1,332

$ 2,083

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